全球智库信息集成服务系统(G2TT): DP8076 Competition in the Pharmaceutical Industry: How do Quality Differences Shape Advertising Strategies?

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP8076
	DP8076 Competition in the Pharmaceutical Industry: How do Quality Differences Shape Advertising Strategies?
	Georges Siotis; Maria-Angeles de Frutos; Carmine Ornaghi
发表日期	2010-10-24
出版年	2010
语种	英语
摘要	We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side e¤ects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising strategies are strategic substitutes, with the better quality drugs being the ones that are most advertised. This positive association stems from the higher rents that firms can extract from consumers whose brand loyalty is endogenously determined by promotional effort. The model's principal hypotheses on advertising and pricing strategies are taken to the data. The latter consists of product level data on price and quantities, product level advertising data as well as the qualitative information on drug quality contained in the Orange Book compiled by the Food and Drug Administration (FDA). The empirical results provide strong support to the model's predictions.
主题	Industrial Organization
关键词	Advertising Market segmentation Pharmaceutical industry Product differentiation
URL	https://cepr.org/publications/dp8076
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/536913
推荐引用方式 GB/T 7714	Georges Siotis,Maria-Angeles de Frutos,Carmine Ornaghi. DP8076 Competition in the Pharmaceutical Industry: How do Quality Differences Shape Advertising Strategies?. 2010.